There happen to be more Bitcoin trading activities going on in Nigeria than exchanges are recording. This is because cryptocurrency users are leaning towards simpler channels that filter the technical processes that come with trading Bitcoin on exchanges. According to a local Media outlet, over $100 million worth of Bitcoin is being traded on chat apps like WeChat and Telegram on a monthly basis.
Apparently, there are three denominations of cryptocurrency trading platforms in the country. The formal ones like Luno are recording around $6 million in daily transactions. While the semi-formal peer-to-peer trading platforms like Paxful, LocalBitcoins, and Remitano are recording as much as $18 million on a weekly basis. The underdog, which happens to be the most informal are the aforementioned chat applications where thousands of users are either actively trading in groups, or through one-on-one conversations. In fact, some of the tradings happen on Instagram and on WhatsApp shops where transactions are initiated and finalized.
Interestingly, the latter makes up the majority of the trading going on in the country, and since Nigeria accounts for 50% of the weekly trading volume recorded in West Africa, these activities hint that there is still room for exchanges to widen their reach.
Simplifying the process of registration, and securing funds, as well as creating easily comprehensible trading features could help exchanges reach and cater to the large number of individuals who prefer trading outside these platforms.
For smaller entities, these informal channels come in handy. For larger businesses, conducting transactions through these platforms does not seem to be very efficient, as these larger businesses would require keeping in touch with multiple vendors, documenting transactions accurately, and searching for businesses with the required Bitcoin supply to successfully carry out the transaction. The integration of liquidity pools and other options favorable for aggregation could help exchanges draw in customers from this large market that had been ignored by many.
Meanwhile, the happenings in Nigeria illustrate that an anti-crypto ban in the country may not be as effective as the government hopes it will. Clearly, Nigerians are always fishing for as many decentralized and simplified platforms to carry on with their trades.
Crypto activities in Nigeria are mirroring down the viewpoints of the Indian crypto community, where a number of proponents believe that banning crypto trading will generate an opening for crypto users to innovate creative alternatives through which they can continue to take part in the space.